Oil Gusher in North Dakota

Turning around America’s economy requires reloading America’s domestic energy productive capacity to fuel job growth.  North Dakota is leading the way in unconventional oil and gas production.

The North Dakota Department of mineral Resources released its monthly oil production report for July setting a new monthly production record of 321,042 barrels of oil per day.  The record has been broken each month in 2010 and is up more than 100,000 barrels per day from a year ago.

All this production is from the Bakken Shales a thin play running through North Dakota, Montana up into Canada.  Since it was difficult to access using convention oil drilling methods, plays like these are only now becoming commercially practicable using horizontal drilling techniques along with hydraulic fracturing of the rock with liquids to release the oil and gas deposits.

The Bismarck Tribune reported that the US portion of the Bakken made up of North Dakota and Montana together can deliver a total of 425,000 barrels of oil per day given current production and rail capacity and in July they were actually producing 385,000 barrels per day or 90% of its capability.  TransCanada announced it will begin shipping oil out of Bakken for transport to the Gulf Coast.  Combined with other capacity additions production is expected to rise to more than 1 million barrels per day by 2020.

Scenario Signpost: RELOAD

Continued expansion of domestic oil and gas production from unconventional sources is a signpost of America’s New Industrial Revolution Scenario.  The main plot line of this scenario is a growing consensus that restoring America’s competitive advantage and security requires expanding both domestic energy production and bringing manufacturing back onshore to reindustrialize the American economy.

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